Finland: Strong collaboration against work-related crime

As work changes, it will also be increasingly important to focus on workers’ psychosocial health, says Riku Rajamäki, a Finnish member of the Nordic Committee of Senior Officials for Labour at the Nordic Council of Ministers. 

There has been an increase in organised crime globally, in parallel with increased freedom of movement and the need for foreign labour. 

Work has become more borderless, not least for construction workers. Photo: Cata Portin

The exploitation of labour and the shadow economy are sometimes used to gain a competitive advantage and are part of some companies’ profit models. The risk has increased with the rising need for foreign labour, including a lot of seasonal work.

Riku Rajamäki is a senior specialist at the Finnish Ministry of Social Affairs and Health. He has played a central role in various projects focusing on workers’ protection, including on Nordic and European levels. He was previously the regional head inspector at the Occupational Safety  for Southern Finland. 

Voluntary practices improve legislation

The need for foreign labour has increased and has led to more crime in Finland, but there are improvements too. Rajamäki has seen that the scope for fraud has significantly decreased in Finland. 

He mentions the construction industry in particular, with its many subcontractors, where employers through their tripartite agreements have voluntarily gone further than what the legislation demands.

Given enough time, this it could end up as legislation since the improved conditions have already become standard within the industry, points out Riku Rajamäki.

Encouraged by Nordic collaboration

Rajamäki told the Nordic Labour Journal back in 2018 about the collaboration and sharing of information between different Finnish authorities.

They compared good practice with experiences from Norway where many different authorities work together in shared offices.

In Finland, the work protection authority would investigate tips and pass them on to police and tax authorities if this was deemed necessary, and if the crime was serious enough. Now this type of cooperation is also part of the Finnish government's programme.

Collaboration of great importance

The authorities’ chance to collaborate is an issue of great importance, explains Riku Rajamäki. This specifically concerns the right to receive and to provide information to other authorities on your own initiative. Some improvements have already occurred.

“Today, information sharing between authorities happens on request but often not automatically. If there is an “impulse” to the police, tax authorities or work protection authorities, they do not necessarily know that the same issue is also being investigated elsewhere,” says Riku Rajamäki.

His dream is a system where all authorities can automatically access the information and together prioritise and share tasks. Not all believe this is a good idea, admits Rajamäki. Some are for instance concerned about the issue of confidentiality and the need to protect personal information. 

The Marin government’s legacy 

The previous government led by the Social Democrats, was seen as prioritising the labour market through many projects and measures. There was extra funding for surveillance and workplace inspections, for instance.

The Finnish media have done some major crime exposés, which has accelerated legislation and surveillance. The cleaning industry has been highlighted as problematic, along with restaurants and the newest startup companies.

There are many examples of underpayment and the exploitation of labour, especially when it comes to foreign workers.

Riku Rajamäki says this makes collaboration even more important. When there is no minimum wage, binding collective agreements become key, and of course, it is also important that these are being adhered to. This is also the case when foreign workers do not know or dare to demand their rights.

When working is a prerequisite for being allowed to remain in Finland, some people will also accept worse working conditions, and this is a problem.

The Orpos government

The centre-right Orpos government that took power in the summer of 2023 also focuses on the labour market but from a slightly different angle. Strengthening the labour market is a central point in the government’s programme.

The Finns Party in particular have wanted to tighten citizenship legislation and change conditions for permanent residence permits and Finnish citizenship.

Finnish citizenship is not something people get automatically. They need to demonstrate successful integration, according to the government programme.

Increased mobility and the need for foreign labour has led to people travelling across borders to work. Photo: Yadid Levy/norden.org

Permanent residence permits can be granted after four years, but require an annual income of €40,000 from regular employment or a higher degree from Finland. Applicants must also be able to demonstrate a good knowledge of Finnish or Swedish, and a clean record.

The income limit for a workers’ residence permit is being raised to the minimum level set out in the respective sectors’ collective agreements – at least €1,600 a month.

Labour immigration is still considered to be extremely important in view of economic growth and for securing the Finnish welfare system. Labour immigration will strengthen the public sector.

A residency permit is based on the right and duty to work. Work is the key to integration in Finland.

Action plan

Finland has also moved forward with an action plan against labour exploitation. The programme lists 33 measures for preventing and tackling the exploitation of foreign workers. 

It also has a chapter on how to strengthen the social responsibility of employers when it comes to preventing and combatting the exploitation of foreign labour. One of the measures includes improving the implementation of criminal liability. 

A permanent address for the fight against work-related crime

Many of these issues have long been on the national and Nordic agenda. During the Finnish Presidency, the fight against workplace crime and exploitation continues. 

As crime becomes more international, the fight against it must follow suit. This kind of cooperation already exists within the EU and the OECD. Now, the Nordic Council of Ministers takes on the execution and administration of the Nordic cooperation project.

In the previous edition, the Nordic Labour Journal reported on the formalisation of Nordic-Baltic cooperation on work-related crime.

This work will now get a permanent address and more stability and a long-term perspective. Riku Rajamäki welcomes this.

New problems

When you get rid of old problems, new ones appear. 

“Finland becomes a kind of gateway between the Nordics and the Baltics because of our geographical position. Many problems are first spotted in Finland before they reach Sweden and the rest of the Nordics,” says Riku Rajamäki.  

Riku Rajamäki from Finland, member of the Nordic Committee of Senior Officials for Labour.

Right now the issue of many stationed workers creates a challenge. They used to come from Estonia or Lithuania. But those countries no longer have a surplus of labour as their economies have improved and wages improved. 

That is why Baltic countries had been sending Ukrainian workers instead. After Russia’s 2022 invasion, the stream of posted workers comes from even further afield, explains Riku Rajamäki. 

A fast lane to work in Finland

A posted worker, according to EU regulations, is an employee sent by their employer to temporarily perform a service in another EU member state.

The freedom of establishment and the free movement of people are fundamental freedoms in the EU. However, this now seems more like a fast lane for foreign labour from third countries to move to Finland. 

It appears that many of the newcomers have never lived in the Baltic states but have only stopped in some Baltic city to obtain the necessary papers, which guarantee that the workers have their social protection there.

This involves an A1 certificate that shows which country the worker is insured in, where the worker or employer is to pay social contributions. 

These certificates seem to be easy to obtain in the Baltics, even for workers from some countries in Central Asia. The day after they receive their certificate, the workers are already at some construction site in Helsinki.

Riku Rajamäki questions whether this is a genuine posting from another EU country or if Finnish immigration and labour laws are being circumvented.

Risk of Exploitation

This group of workers is also the most vulnerable to exploitation, as they are in an unclear and precarious situation, similar to asylum seekers who depend on work to remain in Finland, says Riku Rajamäki.

There is a desire to strengthen cooperation between authorities like the police. Photo: Magnus Fröderberg, norden.org

A worker who asks about their salary and rights risks being labelled as difficult and may also lose the right to stay in Finland. This gives employers leverage that is also exploited.

Light Entrepreneurship – being "your own boss”

Another phenomenon is “light entrepreneurship", which is an alternative to being a salaried employee. It means individuals are responsible for their pension protection and tax payments. Sometimes workers are encouraged – or forced – to start their own businesses to be able to work. 

Light entrepreneurship is not fully recognised in Finnish legislation; you are either an entrepreneur or an employee according to labour laws. 

This is particularly relevant for freelancers working in food delivery and the construction sector. A food delivery worker who is not employed and has an accident on their moped must cover healthcare and disability costs themselves, points out Riku Rajamäki. 

He acknowledges that light entrepreneurship as a model can work in many areas. However, in several sectors, such as construction, there are many ambiguities about who pays social contributions and taxes when the worker has their own business.

A nail in the foot no longer the greatest risk

Riku Rajamäki also wants to introduce a newer phenomenon which the changing labour market has brought with it – psychosocial challenges. In Finland, this issue has primarily been looked at from the individual’s perspective, while the other Nordic countries are better at considering the entire organisational level, says Riku Rajamäki. 

"The psychosocial perspective should be better included in how we work with workplace environments. Therefore, it might be better to talk about the psychosocial work environment rather than the psychosocial burden.” 

While the burden pertains to the individual, the solution lies in the entire organisation and how work is organised.